Analyst Predicts Further Decline for Bitcoin and Ethereum, Highlights One Altcoin's Strong Performance

Analyst Predicts Further Decline for Bitcoin and Ethereum Amid Market Volatility

Cryptocurrency markets have entered a phase of renewed volatility following the release of fresh U.S. inflation data, prompting concerns over potential downturns in major digital assets. Michaël van de Poppe, a prominent analyst and trader with a substantial following on social media, has issued warnings of deeper corrections ahead for Bitcoin (BTC) and Ethereum (ETH). After recent surges that saw Bitcoin reach new all-time highs and Ethereum surpass the $3,000 mark, van de Poppe suggests that both cryptocurrencies are poised to trend lower in line with historical market behaviors.

Describing the current market movements as a "classic move," van de Poppe emphasized the likelihood of further declines aimed at "squeezing out the longs." He noted, “Volatility goes up, price goes up. This means harsh corrections are around the corner.” His analysis projects Ethereum could fall to approximately $2,750 before any meaningful recovery occurs. At the time of reporting, Bitcoin was trading near $116,947, down roughly 5% from its recent peak of $122,838, while Ethereum held steady at $3,048, maintaining a 19% gain over the past week.

Other market experts share a cautious outlook, warning that Bitcoin may face a significant drop if it fails to maintain critical support levels, potentially falling as low as $82,000. Ethereum’s position is similarly precarious, with its key $2,000 support level under threat. Meanwhile, XRP, which experienced a recent rally, is also forecasted by some analysts to decline toward $0.60.

Shifting Focus Toward Altcoins and Emerging Opportunities

Despite Bitcoin’s dominance in the cryptocurrency market remaining robust at 64.46%, there is a discernible shift in investor attention toward altcoins. Several assets, including Fetch.ai (FET), Aave (AAVE), and Dogecoin (DOGE), have seen significant accumulation, which some observers interpret as the potential onset of a new "altseason."

Among the altcoins gaining traction, van de Poppe highlights the layer-1 blockchain SUI Network (SUI) for its strong market fundamentals and resilience. After reclaiming the $3 level, SUI demonstrated a notable recovery, holding firm at $2.35 before breaking its downtrend and initiating a rally. Van de Poppe remarked, “Strongest ecosystems bounce back the strongest when a market is reversing. SUI is one of them.” He further noted that a crucial breakout above $3 places SUI in “buy the dip” territory, with upward momentum expected to continue. At present, SUI is trading at $4.01, reflecting a 2.4% increase over the past 24 hours.

As the broader cryptocurrency market contends with heightened volatility and evolving investor sentiment, analysts urge caution. While Bitcoin and Ethereum face the prospect of further corrections, the growing momentum in select altcoins may signal a shift in market dynamics.

This article does not constitute investment advice. Investors are encouraged to conduct their own research and exercise caution when engaging in cryptocurrency trading.